Canton companies to invest millions, get tax breaks

Two Canton companies are investing a combined $2.5 million and creating dozens of jobs as they ratchet up production.

Greenfield Die & Manufacturing Corp., an auto supplier whose sales have more than doubled to $93 million since 2010, plans to invest $1.1 million and hire 35 employees during a makeover of its facility near Haggerty and Warren.

Greenfield is moving ahead with plans after receiving a 50-percent, four-year tax abatement for certain costs it is incurring as its building gets a facelift. Plant manager Kathy Henneman said the company makes automotive doors, particularly for General Motors and Chrysler.

Toy maker POOF-Slinky, meanwhile, confirmed plans to invest $1.4 million in its Canton-based distribution center and offices near Haggerty and Michigan Avenue. Rodney Metzger, the company’s tax and compliance accounting coordinator, said the business is expanding to 215,000 square feet inside an existing building.

POOF-Slinky, which also has a facility in Plymouth, plans to expand after getting a 50-percent, three-year tax abatement for costs associated with its expansion in Canton, where Metzger said six new jobs have been created and more could come.

The company is doubling its office space in Canton and planning to buy equipment such as storage racks and forklifts, Metzger said.

Greenfield and POOF-Slinky are expanding as both companies Tuesday received tax abatements – formally called industrial facilities exemption certificates – from the Canton Township Board of Trustees.

Addressing the board, Canton Economic Development Manager Kristen Thomas said the latest measures come as officials seek to boost the local economy.

“It’s all about getting people to work,” she said.

The township board agreed, though the latest talks stirred a debate about the larger issue of giving tax breaks that can cut into local tax revenues.

Treasurer Melissa McLaughlin said the aim has been “encouraging growth, but not free-wheeling it.” She said local officials have viewed tax breaks, especially during recession years, as “a necessary evil” to promote economic growth.

Trustee Tom Yack said a larger concern – far beyond the scope of tax abatements – involves businesses that appeal their property assessments to the Michigan Tax Tribunal, often successfully at the expense of local governments.

Yack said the practice has been unfair, costing local governments across Michigan “hundreds of millions of dollars, if not billions.”

McLaughlin agreed, calling it “really egregious” how the process has worked against Michigan communities.

Officials brought the issue to the attention of state Rep. Kristy Pagan, D-Canton, who came to Tuesday’s meeting. Officials indicated the issue needs attention in Lansing.